Sunday, 31 January, 2010
CBC Marketplace supports my earlier post on the Real Estate Seminar scams...
Remember when I said I thought most of these Real Estate investment seminars are scams well... Check this out!!!http://www.cbc.ca/consumer/story/2010/01/28/consumer-rich-dad-poor-dad-marketplace.html?ref=rss
Monday, 25 January, 2010
The tide is turning towards a sellers market... for NOW!
Written by Gemma Beierback
A resurgence in the housing market is just what the doctor ordered for many sellers who have been waiting to get their properties sold and be able to move on. The later part of 2008 and most of 2009 was very slow going for sales in the Calgary and area marketplace. Home values were significantly eroded and many home owners were left in a negative equity position, which either precluded them from selling or forced them to sell at a loss. All indications are the 2010 will be a reboot in the local housing market and it seems to be off to a great start.
Interest rates are still very low and buyers are in the enviable position of being able to profit from both lower housing costs and reduced borrowing costs. A general confidence in the economic forecast is also stimulating buyers. Combine these factors with a listing inventory which has been dramatically diminished and you have a recipe for an emerging sellers market.
Over the past year I have been continually encouraging those people who follow my blog to buy some real estate. I have insisted that this was an opportunity to create wealth through real estate. We know from plentiful historical data that the real estate market does go through cyclical peaks and valleys but the next peak has always eclipsed the previous one. There is no reason to suspect that this cycle will be any different.
Calgary is a strong diversified marketplace with a variety of favourable geographic and economic factors which combine to create a strong real estate marketplace. If we compare property values in Calgary with other major Canadian centres like Toronto and Vancouver we can see that there is still significant value in this market and possible opportunity for beneficial appreciation. I see more and more buyers approaching the 2010 real estate market with excitement and anticipation ready to profit from the reduced prices. There are still good deals available and this is definitely a perfect opportunity to start the process.
In the passed few weeks I have been involved in several multiple offer situations and in speaking to my colleges I am not alone. The market it responding to the favourable selling conditions and buyers are noticing a trending market and taking action. I think it is unrealistic to predict that we are heading back to marketplace similar to the 2006-2007 frenzy. However, it would be irresponsible not to notice the market shift and respond to it accordingly. The economic pundits are predicting roughly 5% appreciation this year in the Calgary and area re-sale marketplace. Sellers beware though, don’t wait to list your house in the hopes of capturing all that appreciation. I predict that the pent up seller demand will explode by the mid point this year and we may see an increase in inventory as sellers who have been on the fence decide the time is right! Get a REALTOR® working for you so that you get the timing right and seize this real estate opportunity whether you are buying or selling.
Gemma Beierback
A resurgence in the housing market is just what the doctor ordered for many sellers who have been waiting to get their properties sold and be able to move on. The later part of 2008 and most of 2009 was very slow going for sales in the Calgary and area marketplace. Home values were significantly eroded and many home owners were left in a negative equity position, which either precluded them from selling or forced them to sell at a loss. All indications are the 2010 will be a reboot in the local housing market and it seems to be off to a great start.
Interest rates are still very low and buyers are in the enviable position of being able to profit from both lower housing costs and reduced borrowing costs. A general confidence in the economic forecast is also stimulating buyers. Combine these factors with a listing inventory which has been dramatically diminished and you have a recipe for an emerging sellers market.
Over the past year I have been continually encouraging those people who follow my blog to buy some real estate. I have insisted that this was an opportunity to create wealth through real estate. We know from plentiful historical data that the real estate market does go through cyclical peaks and valleys but the next peak has always eclipsed the previous one. There is no reason to suspect that this cycle will be any different.
Calgary is a strong diversified marketplace with a variety of favourable geographic and economic factors which combine to create a strong real estate marketplace. If we compare property values in Calgary with other major Canadian centres like Toronto and Vancouver we can see that there is still significant value in this market and possible opportunity for beneficial appreciation. I see more and more buyers approaching the 2010 real estate market with excitement and anticipation ready to profit from the reduced prices. There are still good deals available and this is definitely a perfect opportunity to start the process.
In the passed few weeks I have been involved in several multiple offer situations and in speaking to my colleges I am not alone. The market it responding to the favourable selling conditions and buyers are noticing a trending market and taking action. I think it is unrealistic to predict that we are heading back to marketplace similar to the 2006-2007 frenzy. However, it would be irresponsible not to notice the market shift and respond to it accordingly. The economic pundits are predicting roughly 5% appreciation this year in the Calgary and area re-sale marketplace. Sellers beware though, don’t wait to list your house in the hopes of capturing all that appreciation. I predict that the pent up seller demand will explode by the mid point this year and we may see an increase in inventory as sellers who have been on the fence decide the time is right! Get a REALTOR® working for you so that you get the timing right and seize this real estate opportunity whether you are buying or selling.
Gemma Beierback
The Forecast feeds the homeless...
Written by Gemma Beierback
On Wednesday, January 20th 2010 roughly 1400 members of the Calgary Real estate board converged on the Telus convention centre for the annual forecast conference and trade show. This fantastic event is hosted by the Calgary Real Estate Board for its membership and provides expert panels and speakers on all sorts of topics of interest.
The event begins with breakfast and the presidents speech. This years incoming president Diane Scott was very well received and numerous attendees commented on her wonderful speech. Following the breakfast participants had an opportunity to stroll through the trade show booths and preview a variety of products and services related to the real estate industry; home staging, mortgage lending and virtual tours...
There were numerous breakout sessions throughout the morning including and economic panel, a speakers forum and a technology discussion.
Lunch was a brown bag style lunch box with fruit, a sandwich, a bag of chips and a bottle of water. Once all of the REALTORS® had finished eating the conference volunteers, themselves real estate agents, noticed that many of the lunches had not been used. This is when some quick thinking on the part of the volunteers at the event made sure that there was no waste. The troops quickly rallied and we loaded a car full of lunch boxes and headed over the Mustard Seed to drop them off. The staff were very pleased and the delivery created a lot of attention from onlookers interested in what was in the boxes. Thanks to the generosity and quick thinking of REALTORS® roughly 300 lunches along with additional chips, apples and juice boxes, got to the homeless last wednesday. It isn’t enough to change the world but it may have improved a few lives for a day.
It makes you wonder what happens to all of this left over conference food? There are conventions and conferences everyday and I hope they have the same opportunity to take a few minutes and improve the community. I must say while we were at the Mustard Seed I was touched by the volume of donation traffic making it to the facility. In the short time it took to unload there were numerous Calgarians dropping off donations. It is a powerful reminder of the charity of Calgarians and the misfortune of those who are in need of the services of the Mustard Seed.
I want to challenge you to take a moment to reflect on everything you have in your life and see if you can spare a few dollars, some used clothing or mittens, blankets or sleeping bags or better yet a few hours of your time to share your wealth and fortune with those who have much less. If everyone gave just one dollar that would make a difference. Nothing you have to give is too small. Every donation is a reflection of human kindness and that is the biggest and brightest gift of all!
On Wednesday, January 20th 2010 roughly 1400 members of the Calgary Real estate board converged on the Telus convention centre for the annual forecast conference and trade show. This fantastic event is hosted by the Calgary Real Estate Board for its membership and provides expert panels and speakers on all sorts of topics of interest.
The event begins with breakfast and the presidents speech. This years incoming president Diane Scott was very well received and numerous attendees commented on her wonderful speech. Following the breakfast participants had an opportunity to stroll through the trade show booths and preview a variety of products and services related to the real estate industry; home staging, mortgage lending and virtual tours...
There were numerous breakout sessions throughout the morning including and economic panel, a speakers forum and a technology discussion.
Lunch was a brown bag style lunch box with fruit, a sandwich, a bag of chips and a bottle of water. Once all of the REALTORS® had finished eating the conference volunteers, themselves real estate agents, noticed that many of the lunches had not been used. This is when some quick thinking on the part of the volunteers at the event made sure that there was no waste. The troops quickly rallied and we loaded a car full of lunch boxes and headed over the Mustard Seed to drop them off. The staff were very pleased and the delivery created a lot of attention from onlookers interested in what was in the boxes. Thanks to the generosity and quick thinking of REALTORS® roughly 300 lunches along with additional chips, apples and juice boxes, got to the homeless last wednesday. It isn’t enough to change the world but it may have improved a few lives for a day.
It makes you wonder what happens to all of this left over conference food? There are conventions and conferences everyday and I hope they have the same opportunity to take a few minutes and improve the community. I must say while we were at the Mustard Seed I was touched by the volume of donation traffic making it to the facility. In the short time it took to unload there were numerous Calgarians dropping off donations. It is a powerful reminder of the charity of Calgarians and the misfortune of those who are in need of the services of the Mustard Seed.
I want to challenge you to take a moment to reflect on everything you have in your life and see if you can spare a few dollars, some used clothing or mittens, blankets or sleeping bags or better yet a few hours of your time to share your wealth and fortune with those who have much less. If everyone gave just one dollar that would make a difference. Nothing you have to give is too small. Every donation is a reflection of human kindness and that is the biggest and brightest gift of all!
Thursday, 21 January, 2010
Interest Rate update!!!
Central Bank holds Rates Steady
FOR IMMEDIATE RELEASE
19 January 2010
CONTACT: Jeremy Harrison
613 782-8782
Bank of Canada maintains overnight rate target at
1/4 per cent and reiterates conditional commitment to hold
current policy rate until the end of the second quarter of 2010
OTTAWA – The Bank of Canada today announced that it is maintaining its target for the
overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is
1/4 per cent.
The global economic recovery is under way, supported by continued improvements in financial
conditions and stronger domestic demand growth in many emerging-market economies. While
the outlook for global growth through 2010 and 2011 is somewhat stronger than the Bank had
projected in its October Monetary Policy Report, the recovery continues to depend on
exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support
financial systems.
Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked
up further in the fourth quarter. Total CPI inflation turned positive in the fourth quarter and the
core rate of inflation has been slightly higher than expected in recent months. Nevertheless,
considerable excess supply remains, and the Bank judges that the economy was operating about
3 ¼ per cent below its production capacity in the fourth quarter of 2009.
Canada’s economic recovery is expected to evolve largely as anticipated in the October MPR,
with the economy returning to full capacity and inflation to the 2 per cent target in the third
quarter of 2011. The Bank projects that the economy will grow by 2.9 per cent in 2010 and
3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.
The factors shaping the recovery are largely unchanged – policy support, increased confidence,
improving financial conditions, global growth, and higher terms of trade. At the same time, the
persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to
act as significant drags on economic activity in Canada. On balance, these factors have shifted
the composition of aggregate demand towards growth in domestic demand and away from net
exports. The private sector should become the sole driver of domestic demand growth in 2011.
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its
current level until the end of the second quarter of 2010 in order to achieve the inflation target.
Consistent with this conditional commitment, the Bank will continue to conduct term Purchase
and Resale Agreements based on existing terms and conditions and according to the
accompanying schedule:
http://www.bankofcanada.ca/en/notices_fmd/2010/notice_fad190110.pdf
In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility,
consistent with the framework outlined in the April 2009 MPR.
The risks to the outlook for inflation continue to be those outlined in the October MPR. On the
upside, the main risks are stronger-than-projected global and domestic demand. On the
downside, the main risks are a more protracted global recovery and persistent strength of the
Canadian dollar that could act as a significant further drag on growth and put additional
downward pressure on inflation. While the underlying macroeconomic risks to the projection are
roughly balanced, the Bank judges that, as a consequence of operating at the effective lower
bound, the overall risks to its inflation projection are tilted slightly to the downside.
Information note:
A full update of the Bank’s outlook for the economy and inflation, including risks to the
projection, will be published in the Monetary Policy Report on 21 January 2010. The next
scheduled date for announcing the overnight rate target is 2 March 2010.
FOR IMMEDIATE RELEASE
19 January 2010
CONTACT: Jeremy Harrison
613 782-8782
Bank of Canada maintains overnight rate target at
1/4 per cent and reiterates conditional commitment to hold
current policy rate until the end of the second quarter of 2010
OTTAWA – The Bank of Canada today announced that it is maintaining its target for the
overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is
1/4 per cent.
The global economic recovery is under way, supported by continued improvements in financial
conditions and stronger domestic demand growth in many emerging-market economies. While
the outlook for global growth through 2010 and 2011 is somewhat stronger than the Bank had
projected in its October Monetary Policy Report, the recovery continues to depend on
exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support
financial systems.
Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked
up further in the fourth quarter. Total CPI inflation turned positive in the fourth quarter and the
core rate of inflation has been slightly higher than expected in recent months. Nevertheless,
considerable excess supply remains, and the Bank judges that the economy was operating about
3 ¼ per cent below its production capacity in the fourth quarter of 2009.
Canada’s economic recovery is expected to evolve largely as anticipated in the October MPR,
with the economy returning to full capacity and inflation to the 2 per cent target in the third
quarter of 2011. The Bank projects that the economy will grow by 2.9 per cent in 2010 and
3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.
The factors shaping the recovery are largely unchanged – policy support, increased confidence,
improving financial conditions, global growth, and higher terms of trade. At the same time, the
persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to
act as significant drags on economic activity in Canada. On balance, these factors have shifted
the composition of aggregate demand towards growth in domestic demand and away from net
exports. The private sector should become the sole driver of domestic demand growth in 2011.
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its
current level until the end of the second quarter of 2010 in order to achieve the inflation target.
Consistent with this conditional commitment, the Bank will continue to conduct term Purchase
and Resale Agreements based on existing terms and conditions and according to the
accompanying schedule:
http://www.bankofcanada.ca/en/notices_fmd/2010/notice_fad190110.pdf
In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility,
consistent with the framework outlined in the April 2009 MPR.
The risks to the outlook for inflation continue to be those outlined in the October MPR. On the
upside, the main risks are stronger-than-projected global and domestic demand. On the
downside, the main risks are a more protracted global recovery and persistent strength of the
Canadian dollar that could act as a significant further drag on growth and put additional
downward pressure on inflation. While the underlying macroeconomic risks to the projection are
roughly balanced, the Bank judges that, as a consequence of operating at the effective lower
bound, the overall risks to its inflation projection are tilted slightly to the downside.
Information note:
A full update of the Bank’s outlook for the economy and inflation, including risks to the
projection, will be published in the Monetary Policy Report on 21 January 2010. The next
scheduled date for announcing the overnight rate target is 2 March 2010.
Wednesday, 13 January, 2010
Alberta REALTORS® address the issue of Drug houses!
No Provincial Mould or Air Quality Standards in Place
There are no consistent remediation standards in place for mould or air quality in properties previously used as
marijuana grow-ops or other drug operations.
• Differing Standards: Currently, Alberta municipalities may allow a property to be re-inhabited when local
standards are met. However, the conditions under which a local authority grants re-habitation differ from
community to community. Universal standards for the province of Alberta are needed.
• No Consumer Protection: The potential exists for a property to become ‘sick’ after re-habitation. There are
currently no provisions in place provincially to protect the consumer should this situation arise.
• No Guidelines for Properties that Fail Local Review: There are no guidelines in place to handle properties
that cannot be remediated to the satisfaction of local authorities.
Alberta REALTOR® Position
The province, on its own or in conjunction with the federal authorities, needs to play a leadership role to establish
universal remediation standards for Alberta by:
• Amending building and health codes to create minimum acceptable remediation standards that will assure
Albertans that properties previously used as illegal drug operations are safe for habitation.
• Establishing provisions to protect the consumer in the event a property becomes ‘sick’ after re-habitation.
• Establishing guidelines for properties that fail remediation standards so that properties that cannot be
remediated to the satisfaction of the local authorities are dealt with appropriately.
Alberta REALTORS® Take Action
AREA commissioned local indoor air quality experts Tang G. Lee and Karen Rollins to develop provincial
standards for the assessment and rehabilitation of properties seized due to illicit drug operations.
After much consultation with stakeholders, including law enforcement agencies, health authorities, safety code
officers, environmental consultants, REALTORS® and more, the final report is now ready.
Next Steps
The report, Recommendations for the Assessment and Remediation of Properties Used as Illegal Drug
Operations, will be presented by REALTORS® and AREA representatives to government and industry
stakeholders for endorsement.
AREA Contact
Bill Fowler, Director of Industry & Government Relations
Alberta Real Estate Association (AREA)
403.209.3606
bfowler@areahub.ca
This project is supported by a grant from the Alberta Real Estate Foundation (www.aref.ab.ca).
Suite 300, 4954 Richard Road SW, Calgary, AB T3E 6L1
Phone: 403.228.6845 Fax: 403.228.4360 Toll free: 1.800.661.0231
governmentrelations@areahub.ca www.AREAhub.ca
The Alberta Real Estate Association (AREA) represents the interests of more than 10,500 licensed REALTORS® and 11 local real estate
boards across the province of Alberta.
Illegal Drug Operations Place
Albertans and Their Properties At Risk
October 2009
There are no consistent remediation standards in place for mould or air quality in properties previously used as
marijuana grow-ops or other drug operations.
• Differing Standards: Currently, Alberta municipalities may allow a property to be re-inhabited when local
standards are met. However, the conditions under which a local authority grants re-habitation differ from
community to community. Universal standards for the province of Alberta are needed.
• No Consumer Protection: The potential exists for a property to become ‘sick’ after re-habitation. There are
currently no provisions in place provincially to protect the consumer should this situation arise.
• No Guidelines for Properties that Fail Local Review: There are no guidelines in place to handle properties
that cannot be remediated to the satisfaction of local authorities.
Alberta REALTOR® Position
The province, on its own or in conjunction with the federal authorities, needs to play a leadership role to establish
universal remediation standards for Alberta by:
• Amending building and health codes to create minimum acceptable remediation standards that will assure
Albertans that properties previously used as illegal drug operations are safe for habitation.
• Establishing provisions to protect the consumer in the event a property becomes ‘sick’ after re-habitation.
• Establishing guidelines for properties that fail remediation standards so that properties that cannot be
remediated to the satisfaction of the local authorities are dealt with appropriately.
Alberta REALTORS® Take Action
AREA commissioned local indoor air quality experts Tang G. Lee and Karen Rollins to develop provincial
standards for the assessment and rehabilitation of properties seized due to illicit drug operations.
After much consultation with stakeholders, including law enforcement agencies, health authorities, safety code
officers, environmental consultants, REALTORS® and more, the final report is now ready.
Next Steps
The report, Recommendations for the Assessment and Remediation of Properties Used as Illegal Drug
Operations, will be presented by REALTORS® and AREA representatives to government and industry
stakeholders for endorsement.
AREA Contact
Bill Fowler, Director of Industry & Government Relations
Alberta Real Estate Association (AREA)
403.209.3606
bfowler@areahub.ca
This project is supported by a grant from the Alberta Real Estate Foundation (www.aref.ab.ca).
Suite 300, 4954 Richard Road SW, Calgary, AB T3E 6L1
Phone: 403.228.6845 Fax: 403.228.4360 Toll free: 1.800.661.0231
governmentrelations@areahub.ca www.AREAhub.ca
The Alberta Real Estate Association (AREA) represents the interests of more than 10,500 licensed REALTORS® and 11 local real estate
boards across the province of Alberta.
Illegal Drug Operations Place
Albertans and Their Properties At Risk
October 2009
Monday, 11 January, 2010
Real estate market expected to remain strong in first half of 2010
Real estate market expected to remain strong in first half of 2010
David Paddon, THE CANADIAN PRESS
TORONTO - Canada's residential real estate market is expected to remain unusually strong through the first half of this year after a strong finish to 2009, according to a survey published Thursday by Royal LePage.
The Royal LePage analysis is consistent with other recent reports on the state of the Canadian real estate market, which has rebounded over the past 12 months after sales dried up in late 2008 and hit a multi-year low in January 2009.
The Canadian market's sudden plunge was sparked by a credit crunch that originated in the U.S. housing and lending industries - eventually spreading globally, causing a worldwide recession in the late summer and early fall of 2009However, the Canadian real estate market has been much quicker to recover than its American counterpart, in part because of a more stable banking industry, historically low interest rates and improving consumer confidence.
Royal LePage executive Phil Soper says Canada's real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year."
The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs, he said in a statement.
Royal LePage says house prices appreciated in late 2009, with fourth-quarter price averages higher than in the fourth quarter of 2008.
The average price of detached bungalows rose to $315,055 (up six per cent), the price of a standard two-storey home rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C.
Vancouver, which is frequently Canada's most expensive real estate market, experienced a particularly robust quarter, with home prices rising across all housing types surveyed.
"No other sector of the economy has been as highly affected by economic stimulus as housing," said Soper.
"As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property."
Royal LePage estimates that Vancouver's real estate prices will rise a further 7.2 per cent this year, although February may be soft because of the Olympic Winter Games that will be held in the city and nearby Whistler, B.C.
Detached bungalows in Vancouver sold for an average of $828,750 in the fourth quarter, up 11.4 per cent from the same period last year. Standard condominiums in Vancouver went up 11.8 per cent year-over-year to an average of $452,750. Prices of standard two-storey homes in Vancouver rose 9.6 per cent year-over-year, selling at $917,500.
In Toronto, the average price of a standard condo rose 2.9 per cent to $309,316, detached bungalows rose 9.9 per cent to $446,214 and standard detached homes increased 3.5 per cent to $564,175.
In Montreal, the average price of a detached bungalow rose to $245,125 (up 3.1 per cent; a condo increased to $216,667 (up 16 per cent) and a two-storey house increased 12.3 per cent from a year earlier to $345,789, Royal LePage said.
The Greater Montreal Real Estate Board reported Thursday that the number of sales last year increased 41,802, up three per cent from 2008. The median price of a single-family home was $235,000 last year, up four per cent from 2008.
"Although sales decreased the first four months of 2009, Montreal's real estate market rebounded and finished the year on a positive note," said Michel Beausejour, the Montreal board's chief executive.
The group that represents Toronto-area realtors reported Wednesday that there were 87,308 transactions last year through the Multiple Listing Service, a 17 per cent increase over 2008.
In December, there were 5,541 sales in the Greater Toronto Area (average price $411,931), up from 2,577 sales in December 2008 (average price $361,415), according to the Toronto Real Estate Board.
The Toronto board also said the number of sales of existing homes rebounded in the latter half of 2009 after a slow start at the beginning of last year.
Royal LePage's average price estimates for other Canadian cities include:
-St. John's, N.L.: Detached bungalow, $217,167 (up 14.3 per cent); standard two-storey house $298,833 (up 14.1 per cent).
-Halifax: Detached bungalow, $238,000 (up 10.7 per cent); standard two-storey homes, $265,333 (up 1.8 per cent).
-Charlottetown: Detached bungalow, $160,000 (up 1.9 per cent); standard two-storey $195,000 (up 3.7 per cent).
-Saint John, N.B.: Detached bungalow, $228,000 (up 1.3 per cent); standard two-storey $299,000 (up 1.5 per cent).
-Moncton, N.B.: Detached bungalow, $152,300 in the fourth quarter (up 1.5 per cent); standard two-storey home, $131,000 (up 4.0 per cent)
-Fredericton: Detached bungalow, $182,000 (up 12.3 per cent); standard two-storey, $210,000 (unchanged).
-Ottawa: Detached bungalow, $332,417 (up 3.4 per cent); standard two-story home $331,917 (up 3.7 per cent).
-Winnipeg: Detached bungalow, $241,650 (up 9.9 per cent); standard two-storey home $275,500 (up 10 per cent).
-Edmonton: Detached bungalow, $299,286 (down 0.7 per cent); standard two-storey home, $340,557 (down 1.2 per cent)
-Calgary: Detached bungalow, $412,478 (up 0.5 per cent); standard two-storey home, $427,067 (up 2.3 per cent).
David Paddon, THE CANADIAN PRESS
TORONTO - Canada's residential real estate market is expected to remain unusually strong through the first half of this year after a strong finish to 2009, according to a survey published Thursday by Royal LePage.
The Royal LePage analysis is consistent with other recent reports on the state of the Canadian real estate market, which has rebounded over the past 12 months after sales dried up in late 2008 and hit a multi-year low in January 2009.
The Canadian market's sudden plunge was sparked by a credit crunch that originated in the U.S. housing and lending industries - eventually spreading globally, causing a worldwide recession in the late summer and early fall of 2009However, the Canadian real estate market has been much quicker to recover than its American counterpart, in part because of a more stable banking industry, historically low interest rates and improving consumer confidence.
Royal LePage executive Phil Soper says Canada's real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year."
The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs, he said in a statement.
Royal LePage says house prices appreciated in late 2009, with fourth-quarter price averages higher than in the fourth quarter of 2008.
The average price of detached bungalows rose to $315,055 (up six per cent), the price of a standard two-storey home rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C.
Vancouver, which is frequently Canada's most expensive real estate market, experienced a particularly robust quarter, with home prices rising across all housing types surveyed.
"No other sector of the economy has been as highly affected by economic stimulus as housing," said Soper.
"As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property."
Royal LePage estimates that Vancouver's real estate prices will rise a further 7.2 per cent this year, although February may be soft because of the Olympic Winter Games that will be held in the city and nearby Whistler, B.C.
Detached bungalows in Vancouver sold for an average of $828,750 in the fourth quarter, up 11.4 per cent from the same period last year. Standard condominiums in Vancouver went up 11.8 per cent year-over-year to an average of $452,750. Prices of standard two-storey homes in Vancouver rose 9.6 per cent year-over-year, selling at $917,500.
In Toronto, the average price of a standard condo rose 2.9 per cent to $309,316, detached bungalows rose 9.9 per cent to $446,214 and standard detached homes increased 3.5 per cent to $564,175.
In Montreal, the average price of a detached bungalow rose to $245,125 (up 3.1 per cent; a condo increased to $216,667 (up 16 per cent) and a two-storey house increased 12.3 per cent from a year earlier to $345,789, Royal LePage said.
The Greater Montreal Real Estate Board reported Thursday that the number of sales last year increased 41,802, up three per cent from 2008. The median price of a single-family home was $235,000 last year, up four per cent from 2008.
"Although sales decreased the first four months of 2009, Montreal's real estate market rebounded and finished the year on a positive note," said Michel Beausejour, the Montreal board's chief executive.
The group that represents Toronto-area realtors reported Wednesday that there were 87,308 transactions last year through the Multiple Listing Service, a 17 per cent increase over 2008.
In December, there were 5,541 sales in the Greater Toronto Area (average price $411,931), up from 2,577 sales in December 2008 (average price $361,415), according to the Toronto Real Estate Board.
The Toronto board also said the number of sales of existing homes rebounded in the latter half of 2009 after a slow start at the beginning of last year.
Royal LePage's average price estimates for other Canadian cities include:
-St. John's, N.L.: Detached bungalow, $217,167 (up 14.3 per cent); standard two-storey house $298,833 (up 14.1 per cent).
-Halifax: Detached bungalow, $238,000 (up 10.7 per cent); standard two-storey homes, $265,333 (up 1.8 per cent).
-Charlottetown: Detached bungalow, $160,000 (up 1.9 per cent); standard two-storey $195,000 (up 3.7 per cent).
-Saint John, N.B.: Detached bungalow, $228,000 (up 1.3 per cent); standard two-storey $299,000 (up 1.5 per cent).
-Moncton, N.B.: Detached bungalow, $152,300 in the fourth quarter (up 1.5 per cent); standard two-storey home, $131,000 (up 4.0 per cent)
-Fredericton: Detached bungalow, $182,000 (up 12.3 per cent); standard two-storey, $210,000 (unchanged).
-Ottawa: Detached bungalow, $332,417 (up 3.4 per cent); standard two-story home $331,917 (up 3.7 per cent).
-Winnipeg: Detached bungalow, $241,650 (up 9.9 per cent); standard two-storey home $275,500 (up 10 per cent).
-Edmonton: Detached bungalow, $299,286 (down 0.7 per cent); standard two-storey home, $340,557 (down 1.2 per cent)
-Calgary: Detached bungalow, $412,478 (up 0.5 per cent); standard two-storey home, $427,067 (up 2.3 per cent).
Wednesday, 6 January, 2010
Teaching at the Real Estate Board...
I have been teaching the rural real estate program for over a year now at the Calgary Real Estate Board and at Mount Royal University (I like to joke this makes me a university professor)... I get such a rush from teaching it has truly become a bit of a passion for me. Today I had my largest class to day with 32 learners and the residential class next to us (which will eventually be taking my class) has 36 learners... This is an exceptional barometer of the Real Estate climate as last year we had very few learners in our classes... Clearly those people thinking of getting into the industry are feeling far more confident about where things are going.
I really feel confident that the calibre of industry member is very high having seen numerous new real estate professionals coming through the program. I am really looking forward to meeting them in the market place and getting to do business with them!
I really feel confident that the calibre of industry member is very high having seen numerous new real estate professionals coming through the program. I am really looking forward to meeting them in the market place and getting to do business with them!
Monday, 4 January, 2010
Is it possible 20% of the inventory isn't even available?
As of this very second there are 3277 listings on the market in Calgary. That might seem like a big number but it is well below average. I generally expect to see as many listings as agents. There are over 5000 REALTORS with the Calgary Real Estate Board and a normal number of listings in Calgary is usually around the 5000 mark. In 2008 at the bottom of that lull in the economy, we had about 9000 listings on the market and at the peek in 2006-2007 we were down to 900. So, what it means to me is that we are probably on the cusp of a sellers market. I have been shouting for about 8 months that if you didn't act fast you might miss the boat and I still believe that. I don't think we are heading back to the frenzy of late '06 early '07 but quite possible we will see significant appreciation this year, driven by low inventory!
So what does the title of this entry really mean; "20% of the inventory isn't available"? Well in the past couple of weeks I have been very busy with buyers. I realize it is the week after Christmas but when a buyer is ready, they are ready. I have been shocked and disappointed to find that when I am booking showings there is a large portion of Real Estate agents that are not returning showing request calls! WOW!! I am shocked and disappointed!
In fact the way the numbers have added up since Christmas about 20% of the agents I call don't call back at all...I left 6 messages on 3 different numbers for one agent over the course of 3 days and never even got a response!
I have to wonder if the sellers realize that their house is only on the market in principal because other agents are unable to show it without confirmation from the listing agent.
If my findings are representative of the greater population it means that in essence there are only 2621 listings on the market in Calgary as the balance, over 600 listings, are not being represented so it is basically impossible to get access and show them to buyers!
Now if I am a seller in this market, I want to make sure I am listed with an agent that is booking showings. The market is busy right now, sellers need great representation in order to get maximum exposure and a sale! All the advertising in the world can't sell your home if the buyer can't get inside!
There are exceptional Real Estate Professional in Calgary, there are many of them... Make sure you work with one!
So what does the title of this entry really mean; "20% of the inventory isn't available"? Well in the past couple of weeks I have been very busy with buyers. I realize it is the week after Christmas but when a buyer is ready, they are ready. I have been shocked and disappointed to find that when I am booking showings there is a large portion of Real Estate agents that are not returning showing request calls! WOW!! I am shocked and disappointed!
In fact the way the numbers have added up since Christmas about 20% of the agents I call don't call back at all...I left 6 messages on 3 different numbers for one agent over the course of 3 days and never even got a response!
I have to wonder if the sellers realize that their house is only on the market in principal because other agents are unable to show it without confirmation from the listing agent.
If my findings are representative of the greater population it means that in essence there are only 2621 listings on the market in Calgary as the balance, over 600 listings, are not being represented so it is basically impossible to get access and show them to buyers!
Now if I am a seller in this market, I want to make sure I am listed with an agent that is booking showings. The market is busy right now, sellers need great representation in order to get maximum exposure and a sale! All the advertising in the world can't sell your home if the buyer can't get inside!
There are exceptional Real Estate Professional in Calgary, there are many of them... Make sure you work with one!
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